National Electricity Market

The National Electricity Market (NEM) is a wholesale exchange for electricity for the Commonwealth adjacent areas and those States and Territories that are electrically connected - Queensland, NSW, ACT, Victoria, South Australia and Tasmania. The NEM commenced operation on 13 December 1998 with just NSW and Victoria, with other regions progressively joining since then.

The National Electricity Market Management Company (NEMMCO) was established in May 1996 to implement, administer and operate the wholesale exchange and to manage the security of the power system.

The development of the NEM was part of the broad energy reforms undertaken over the last decade.

The National Electricity Objective

The National Electricity Objective, as stated in the National Electricity Law is:

to promote efficient investment in, and efficient operation and use of, electricity services for the long-term interests of consumers of electricity with respect to–

price, quality, safety, reliability, and security of supply of electricity; and
the reliability, safety and security of the national electricity system.